Contagious Policies: An Analysis of Spatial Interactions Among Countries' Capital Account Policies

Konferenzbeitrag

Countries' capital account policies might be contagious in the sense that domestic policies are driven by other countries' policies. A model of strategic interactions is developed to show that countries' best response to policy changes elsewhere consists in imitating this policy. Using a spatial econometric model, the hypothesis of policy interactions is tested in a large panel data set. The evidence shows that capital account policies are contemporaneously correlated across countries. Concerning fundamentals, the move to a fixed exchange rate regime and an increase in real world interest rates are correlated with the imposition of capital account restrictions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Proceedings of the German Development Economics Conference, Hannover 2010 ; No. 41

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; International Investment; Long-term Capital Movements ; International Policy Coordination and Transmission
• Subject: Capital Controls ; Strategic Interaction ; Panel Data Analysis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Steiner, Andreas
• Event: Veröffentlichung
• (who): Verein für Socialpolitik, Ausschuss für Entwicklungsländer
• (where): Göttingen
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/39989
• Last update: 10.03.2025, 11:43 AM CET